Project Management Professional (PMP)® Exam Review · Project Management Professional (PMP) ... Project Management Institute, ... project or environmental variables and their relationships
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* An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
1
2
3
4
Scope
Schedule
Cost
Quality
Project ObjectivesUncertainty
A state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.
Cause and Effect
A risk is triggered by one or more causes and it may have one or more impacts.
* Project Risk Management includes the processes of conducting risk management planning, identification, analysis, response planning, and controlling risk on a project.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 2-9, Page 40.
Risk appetite – the degree of uncertainty an entity is willing to take
on in anticipation of a reward.*
The organization is willing to accept reasonable risk to the cost on this project.
Risk tolerance – the degree, amount or volume of risk that an organization
or individual will withstand.*
The organization or stakeholder is willing to accept risk of up to 8% increase in the project
cost.
Risk threshold – measures along the level of uncertainty or the level of impact at which a stakeholder may have specific
interest.*
The organization or stakeholder will NOT accept a risk that may increase the project
cost by more than 9%.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute Inc., 2013, Page 311.
“To be successful, an organization should be dedicated to address risk management proactively and consistently throughout the project.”
Positive and negative risks are commonly known as opportunities and threats.
Risk Aversion Risk Taker
Project risk could exist from initiation
till closing.
Risk Neutral
KEY
PO
INTS
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute Inc., 2013, Page 311.
Project Risk Management Processes11.1 Plan Risk Management —The process of defining how to conduct risk management activities for a project.*
11.2 Identify Risks—The process of determining which risks may affect the project and documenting their characteristics.*
11.3 Perform Qualitative Risk Analysis—The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact. *
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Risk Management Processes11.4 Perform Quantitative Risk Analysis—The process of numerically analyzing the effect of identified risks on overall project objectives.*
11.5 Plan Risk Responses—The process of developing options and actions to enhance opportunities and to reduce threats to project objectives.*
11.6 Control Risks—The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.*
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 11-2, Page 313.
* The process of defining how to conduct risk management activities for a project.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 11-2, Page 313.
– Various techniques used to evaluate, analyze, or forecast potential outcomes based on possible variations of project or environmental variables and their relationships with other variables.*
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 11-2, Page 313.
– Judgment provided based upon expertise in an application area, knowledge area, discipline, industry, etc., as appropriate for the activity being performed. Such expertise may be provided by any group or person with specialized education, knowledge, skill, experience, or training.*
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 11-2, Page 313.
• Meetings– Meetings should be a common way to develop risk management plan
with project team members. Meetings can include stakeholders who have vested interested in the project and subject matter experts.
– Several decision can be made this meeting including but not limited to1. Plans to conduct risk management activities2. Assign budget and schedule for risk management3. Assign responsibility in risk management4. Develop templates for risk categories
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute Inc., 2013, Page 316.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 11-2, Page 313.
• Risk Management Plan– This will layout the risk management activities structure and
plan.• Methodology
• Roles and responsibilities
• Budgeting
• Timing
• Risk categories
• Definitions of risk probability and impact
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute Inc., 2013, Page 316.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 11-2, Page 313.
Definitions of risk probability and impactDefined Conditions for Impact Scales of a Risk on Major Project Objectives
Project Objectives
Relative or numerical scales are shown
Very low / 0.1 Low / 0.2 Moderate /0.3 High /0.5 Very High /0.8
CostInsignificant cost
increase< 3% cost increase
3% - 5% cost increase
5%-10% cost increase
> 10% cost increase
TimeInsignificant time
increase< 10 days delay 10 to 20 days delay 20 to 30 days delay > 30 days delay
ScopeScope decrease
barely noticeableMinor areas ofscope affected
Major areas ofscope affected
Scope reductionunacceptable to
sponsor
Project end itemis effectively
useless
QualityQuality degradation
barely noticeable
Only very demandingapplicationsare affected
Quality reductionrequires sponsor
approval
Quality reductionunacceptable to
sponsor
Project end itemis effectively
useless
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Table 11.1, Page 318.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute Inc., 2013, Page 318.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 11-2, Page 313.
* Identify Risks is the process of determining which risks may affect the project and documenting their characteristics.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
This process will help you identify and anticipate uncertain events.
Stakeholders outside the project team may provide additional objective information.
This process should involve the project team
Iterative processFrequency of
iteration
New risks may evolve
Participation in each cycle
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute Inc., 2013, Page 321.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-5, Page 319.
Who can help you with identifying risks?Project Manager, Project Team Members,
Risk Management Team (If assigned), Customers, Subject Matter Experts from outside the Project Team, End Users,
other Project Managers, Stakeholders, and Risk Management Experts.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-5, Page 319.
The process of gathering a corpus of information and reviewing it to determine accuracy and completeness.*
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-5, Page 319.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-5, Page 319.
* A general data gathering and creativity technique that can be used to identify risks, ideas, or solutions to issues by using a group of team members or subject matter experts.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-5, Page 319.
Delphi technique 1. An information gathering technique used as a way to reach a consensus of experts on a subject.
2. Experts on the subject participate in this technique anonymously.
3. A facilitator uses a questionnaire to solicit ideas about the important project points related to the subject.
4. The responses are summarized and are then re-circulated to the experts for further comment.
5. Consensus may be reached in a few rounds of this process.
6. The Delphi technique helps reduce bias in the data and keeps any one person from having undue influence on the outcome.*
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-5, Page 319.
* A formal or informal approach to elicit information from stakeholders by talking to them directly.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-5, Page 319.
An analytical technique used to determine the basic underlying reason that causes a risk. A root cause may underlie more than one risk.*
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-5, Page 319.
Risk identification checklists are developed based on historical information. The checklist should be reviewed during project closure to incorporate new lessons learned and improve it for use on future projects.*
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-5, Page 319.
* A technique that explores the accuracy of assumptions and identifies risks to the project from inaccuracy, inconsistency, or incompleteness of assumptions.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-5, Page 319.
• Cause and effect diagrams– * A decomposition technique that helps trace an undesirable
effect back to its root causes.
• System or process flow charts– These show how various elements of a system interrelate and the
mechanism of causation.
• Influence diagrams– * A graphical representation of situations showing causal
influences, time ordering of events, and other relationships among variables and outcomes.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-5, Page 319.
Analysis of strengths, weaknesses, opportunities, and threats of an organization, project, or option.*
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-5, Page 319.
Judgment provided based upon expertise in an application area, knowledge area, discipline, industry, etc., as appropriate for the activity being performed. Such expertise may be provided by any group or person with specialized education, knowledge, skill, experience, or training.*
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-5, Page 319.
– A document in which the results of risk analysis and risk response planning are recorded.
• List of identified risks.
• List of potential responses.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-5, Page 319.
It is usually a rapid and cost-effective means of establishing priorities for plan risk responses
Performed regularly throughout the project life cycle
Assesses the priority of identified risks
It enables project managers to reduce the
level of uncertainty
This process can lead into perform quantitative risk
analysis
Focus on high-priority risks.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute Inc., 2013, Page 329.
* The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-8, Page 328.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-8, Page 328.
Perform Qualitative Risk Analysis: Tools and Techniques
1. Risk probability and impact assessment
2. Probability and impact matrix
3. Risk data quality assessment
4. Risk categorization
5. Risk urgency assessment
6. Expert judgmentProject Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-8, Page 328.
• “Risk probability assessment investigates the likelihood that each specific risk will occur. Risk impact assessment investigates the potential effect on a project objective such as schedule, cost, quality, or performance, including both negative effects for threats and positive effects for opportunities.”
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-8, Page 328.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute Inc., 2013, Page 329.
Evaluation of each risk’s importance and priority for attention is typically conducted using a look-up table or a probability and impact matrix.*
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, Figure 11.10, Page 331.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
* Technique to evaluate the degree to which the data about risks is useful for risk management.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-8, Page 328.
* Organization by sources of risk (e.g., using the RBS), the area of the project affected (e.g., using the WBS), or other useful category (e.g., project phase) to determine the areas of the project most exposed to the effects of uncertainty.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-8, Page 328.
* Review and determination of the timing of actions that may need to occur sooner than other risk items.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-8, Page 328.
Expert judgment is required to evaluate the probability and impact of each risk.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute Inc., 2013, Page 333.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-8, Page 328.
– Project documents that may be updated include, but are not limited to:
– Risk register updates
– Assumptions log updates
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute Inc., 2013, Page 333.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-8, Page 328.
* The process of numerically analyzing the effect of identified risks on overall project objectives.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-11, Page 334.
6. Risk RegisterProject Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-11, Page 334.
Perform Quantitative Risk Analysis: Tools and Techniques
1. Data gathering and representation techniques
2. Quantitative risk analysis and modeling techniques
3. Expert judgment
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-11, Page 334.
• Interviewing. “Interviewing techniques draw on experience and historical data to quantify the probability and impact of risks on project objectives. The information needed depends upon the type of probability distributions that will be used. For instance, information would be gathered on the optimistic (low), pessimistic (high), and most likely scenarios for some commonly used distributions.”
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-11, Page 334.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute Inc., 2013, Page 336.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-14, Page 337.
2. Quantitative Risk Analysis and Modeling Techniques
1. Sensitivity analysis
2. Expected monetary value analysis
3. Modeling and simulation
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-11, Page 334.
Sensitivity analysis • * A quantitative risk analysis and modeling technique used to help determine which risks have the most potential impact on the project.
• It examines the extent to which the uncertainty of each project element affects the objective being examined when all other uncertain elements are held at their baseline values.
• The typical display of results is in the form of a tornado diagram.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-15, Page 338.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure 11-16, Page 339.
A project simulation uses a model that translates the specified detailed uncertainties of the project into their potential impact on project objectives. Simulations are typically performed using the Monte Carlo technique.*
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-17, Page 340.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Judgment provided based upon expertise in an application area, knowledge area, discipline, industry, etc., as appropriate for the activity being performed. Such expertise may be provided by any group or person with specialized education, knowledge, skill, experience, or training.*
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-11, Page 334.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
• Probability of achieving cost and time objectives.
• Prioritized list of quantified risks.
• Trends in quantitative risk analysis results.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-11, Page 334.
Identification and assignment of one person (an owner for risk response) to take responsibility for each agreed-to and funded
risk response
Cost-effective in meeting the challenge
Optimum risk response
Follows of qualitative and or
quantitative analysis
Agreed upon by all parties involved
Realistic
Key Points
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute Inc., 2013, Page 343.
* The process of developing options and actions to enhance opportunities and to reduce threats to project objectives.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-18, Page 342.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-18, Page 342.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-18, Page 342.
• Risk avoidance is a risk response strategy whereby the project team acts to eliminate the threat or protect the project from its impact.Avoid
• Risk transference is a risk response strategy whereby the project team shifts the impact of a threat to a third party, together with ownership of the response.Transfer
• Risk mitigation is a risk response strategy whereby the project team acts to reduce the probability of occurrence or impact of a risk.Mitigate
• Risk acceptance is a risk response strategy whereby the project team decides to acknowledge the risk and not take any action unless the risk occurs.Accept
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-18, Page 342.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
• The exploit strategy may be selected for risks with positive impacts where the organization wishes to ensure that the opportunity is realized. Exploit
• Sharing a positive risk involves allocating some or all of the ownership of the opportunity to a third party who is best able to capture the opportunity for the benefit of the project.
Share
• The enhance strategy is used to increase the probability and/or the positive impacts of an opportunity.Enhance
• Accepting an opportunity is being willing to take advantage of the opportunity if it arises, but not actively pursuing it.Accept
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-18, Page 342.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
• Responses provided which may be used in the event that a specific trigger occurs.*
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-18, Page 342.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Judgment provided based upon expertise in an application area, knowledge area, discipline, industry, etc., as appropriate for the activity being performed. Such expertise may be provided by any group or person with specialized education, knowledge, skill, experience, or training.*
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-18, Page 342.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
1. Project Management Plan Updates Schedule management plan Cost management plan Quality management plan Procurement management plan Human resource management plan Scope baseline Schedule baseline Cost baseline
2. Project Documents Updates
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-18, Page 342.
* Control Risks is the process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating
risk process effectiveness throughout the project.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-20, Page 349.
Project work should be continuously monitored for new, changing, and outdated risks.
Risk management policies and procedures are being followed
Project assumptions are still valid.
Contingency reserves for cost or schedule should be adjusted
based on the current risk assessment.
Analysis shows an assessed risk has changed
or can be retired.
Risk response owner reports periodically to the project
manager
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute Inc., 2013, Page 350.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-20, Page 349.
6. MeetingsProject Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-20, Page 349.
* Risk reassessment is the identification of new risks, reassessment of current risks, and the closing of risks that are outdated.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-20, Page 349.
* Examination and documentation of the effectiveness of risk responses in dealing with identified risks and their root causes, as well as the effectiveness of the risk management process.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-20, Page 349.
3. Variance and trend analysisA technique for determining the cause and degree of difference between the baseline andactual performance. (Variance Analysis)
An analytical technique that uses mathematical models to forecast future outcomes based onhistorical results. (Trend Analysis)
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-20, Page 349.
“Technical performance measurement compares technical accomplishments during project execution to the schedule of technical achievement.”
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-20, Page 349.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute Inc., 2013, Page 350.
* An analytical technique to determine the essential features and relationships of components in the project management plan to establish a reserve for the schedule duration, budget, estimated cost, or funds fora project.
* These definitions are taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK ® Guide) - Fifth Edition, Project Management Institute, Inc., 2013.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-20, Page 349.
“Project risk management should be an agenda item at periodic status meetings. The amount of time required for that item will vary, depending upon the risks that have been identified, their priority, and difficulty of response.”
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-20, Page 349.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute Inc., 2013, Page 352.
Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013, figure11-20, Page 349.